Which markets performed best for investors in 2021
Updated: Apr 26, 2022
Over recent years, it’s been no surprise to see Big Tech near the top of any list. In 2021, Alphabet continued its tear, soaring 65% to hit a $2 trillion market cap.
Microsoft finished up the year 51%, Apple up 34%, and even Meta Platforms (née Facebook) posted double-digit gains. Only Amazon had single-digit gains, up 2.4% in 2021.
Biotechnology also outperforming in 2021 due to the production of vaccines for Covid
Because of the Covid-19, stronger demand for more advanced chips from the consumer electronics and computer industry lead to shortage of semiconductor
Nvidia, for example, more than doubled its share price over the course of the year, with 125% growth. Other companies in the semiconductor equipment and materials space, such as ASML and Applied Materials, saw gains above 60%.
Oil and Gas Exploration & Production
A strong oil and gas sector means billions more in transfer payments that can help pay for social programs, schools, hospitals and the jobs that go with across the country. According to the most recent study, the world's demand for oil is expected to peak by 2035.
The WTI price started the year below $50 per barrel, but finished the year at $75 per barrel—a swing that makes a big difference in the economics of each barrel.
Real Estate Investment Trusts (REITs)
It was one of the biggest years in decades for REITs, which saw the FTSE Nareit All Equity REITs index have its best performance since 1976.
Those that know REITs are aware that returns vary by property sector, and this remains the case here. Specifically, it was industrial REITs—and especially self-storage REITs—that outperformed.
With record-low interest rates and continued upheaval from COVID-19, it sets a perfect stage for opportunistic private equity firms.
The asset management industry as a whole did well in 2021, but specifically it was PE firms like Blackstone and KKR that took advantage, posting gains of 99% and 84% respectfully.
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